The BSE Sensex fell 39 points to 19,545 on Tuesday, amid host of investor concerns over high inflation, interest rates and below-expected earnings by corporates in the fourth quarter of last financial years.
Brokers said there was strong profit-booking initially, ahead of monthly settlement in the derivatives segment this week, as markets saw capital outflows amid ‘disappointing’ Q4 corporate results. However, in volatile trading, investors later bought heavyweights at lower levels leading to sharp recovery after mid-session, amid firm openings in European markets. The 30-share Bombay Stock Exchange barometer opened stable but fell to a low of 19,306.92 on weak Asian cues. Later, it moved into the positive terrain touching a high of 19,626.13 before concluding the day at 19,545.35 — down 38.96 points or 0.2 per cent. The NSE 50-issue Nifty also closed down by a mere 6.10 points or 0.1 per cent at 5,868.40.
Index heavyweight Reliance Industries fell for the second straight day by 0.83 per cent after having reported, late last week, lower-than-expected earnings for Q4 March 2011. Earlier, Infosys — the second most-heaviest on the Sensex — had also posted a similar show of its results. The two carry about 23 per cent weightage on Sensex.